Worldwide central banks compensating for weak economies with stimulus programs next year will drive gold futures to achieving and surpassing the threshold price of $2,000 per troy ounce, the head of a German bank's metals trading unit told Bloomberg.
As part of the effort to preserve the recovery and help it continue its momentum, the central banks will intervene with programs that benefit the price of gold, global head Raymond Key with Deutsche Bank told the news source during a conference. The London Bullion Market Association's annual conference was being held in Hong Kong as the yellowish metal drives toward a 12th consecutive year of annual gains.
"We'll take out $2,000, we'll go higher," the global head said during an interview. "That's on the view that they'll continue to print money."
At 10:09 a.m. on Wednesday, gold futures gained 0.15 percent, a $2.65 lift to $1,727.65 per troy ounce.
Reuters reports the precious metal also benefited from a bigger-than-forecast drop in retail sales last month in the U.S.
The record price for the yellowish metal is $1,923.70 per troy ounce as established on September 7, 2011.
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